Italy Spending Boost, U.K. Lack of Plan, Turkish Rates: Eco Day

(Bloomberg) -- Welcome to Thursday, Europe. Here’s the latest news and analysis from Bloomberg Economics to help you start the day:

• Italy’s government approved a proposal for about 25 billion euros ($28.9 billion) in extra spending to rescue the economy from the coronavirus outbreak, the cabinet said
• Boris Johnson’s administration had no economic plan for the pandemic in an “astonishing” failure of governance, a cross-party panel of U.K. lawmakers said. Meanwhile, Johnson will stress the value of the U.K. in a visit to Scotland, where he hopes to head off growing support for Scottish independence
• The mix of grants and loans in Europe’s virus rescue package could have been better, according to ECB chief Christine Lagarde, who also said female leaders proved themselves in the pandemic
• It’s a busy day for central banks:
  • Turkey’s first interest-rate hike since 2018 may be in play later this year, but economists unanimously expect the central bank to extend its current pause Thursday
  • The shock resignation of Ukraine’s central bank governor has cast a cloud of doubt on the path of interest rates after eight straight cuts
  • Meanwhile, muted inflation may give room for a rate cut in South Africa
• Sweden’s experience with Covid-19 shows that when policy is insufficient to stop the spread of the virus, both public health and economic output decline together, Johanna Jeansson writes
• Australia’s budget deficit will reach a post-World War II record amid a surge in spending to counter the virus, as the government sees the crisis spilling into next year
• The U.S. labor market rebound is increasingly at risk after a survey showed employment dropping sharply
• The Olympic cauldron will remain unlit and its stadium empty Friday -- the day the Tokyo Games were supposed to begin -- as their virus-driven postponement leaves fans wondering if it’s worth holding on to tickets and hotel operators fretting over thousands of vacant rooms
• For a soft-spoken and unfailingly polite figure, Judy Shelton is inspiring no shortage of fear in Washington
• President Vladimir Putin gave the go-ahead to consider hedging Russia’s massive oil and gas export revenues to protect against price drops, according to a senior official

©2020 Bloomberg L.P.